Uber plans to close its alcohol delivery service called Drizly; This is why

Taxi company Uber is closing its alcohol delivery service Drizly, which it acquired for $1.1 billion.

After alcohol arrived on the doorstep, Uber CEO Dara Khosrowshahi even planned to deliver cannabis or marijuana when “the way is clear.”

San Francisco: Well-known taxi company Uber has announced the closure of its alcohol delivery service Drizly. Notably, Uber acquired it for $1.1 billion. Uber planned to integrate Drizly into Uber Eats, but was unsuccessful and ultimately had to make this decision. Drizly will be discontinued in March, according to a report from Axios.

“After three years of operating independently within the Uber family, Drizly has decided to close the company and focus on our core Uber Eats strategy: helping consumers get almost everything – from food to groceries to alcohol – all in one app ,” an Uber spokesperson said in a statement.

“We are grateful to the Drizly team for their many contributions to the growth of the BevAlc delivery category as the original industry pioneer,” the spokesperson added.

Drizly's backend technology

Drizly provided backend technology that allows local liquor stores to handle their own deliveries. In 2020, it confirmed a hack that exposed the information of about 2.5 million customers. It was the largest on-demand alcohol marketplace in the US, available in more than 1,400 cities.

After alcohol arrived on the doorstep, Uber CEO Dara Khosrowshahi even planned to deliver cannabis or marijuana when “the way is clear.” Uber's CEO told CNBC News in 2021 that the ride-hailing company could start delivering marijuana as soon as federal regulations allow the company to do so.

“If the path is clear for cannabis, if federal laws come into play, we will absolutely look at it,” Khosrowshahi said in the report. Marijuana is still illegal under U.S. federal law, but some lawmakers have expressed willingness to change the policy.

Uber launches EV cars in Ayodhya

Ride-hailing platform Uber on Sunday discontinued its EV auto-rickshaw service in Ayodhya under the Uber Auto category in the presence of Uttar Pradesh Chief Minister Yogi Adityanath.

The company said it will also commence operations of UberGo, the affordable car service, along with Uber Intercity in Ayodhya, which will support all intercity travel needs to the holy city from popular destinations in Uttar Pradesh to connect the temple city to various destinations. .

“With this expansion, we are not only providing enhanced mobility options for tourists and pilgrims, but also unlocking earning opportunities for many more people in the region,” said Prabhjeet Singh, president of Uber India and South Asia. The expansion to Ayodhya is in line with Uber's growth plans in India, the company said. Today, Uber is available in 125 cities.

“We want to contribute to tourism in Ayodhya, promote a seamless travel experience and promote sustainable economic growth,” Singh said.

(With input from agencies)